SEBI proposes introducing a mandatory “Credit Risk-o-Meter” for debt securities, featuring six colour-coded risk levels. The lowest credit risk is marked as “Irish Green,” while the highest risk levels are indicated in red for high to very high risk of default.
The regulator’s stated goal is to help investors better understand the potential for default risks associated with different debt offerings. By standardising how credit risk information is presented, the measure is intended to make it easier to compare and assess various debt securities. While both outlets describe the same core proposal—six risk tiers and clearer risk communication—their coverage emphasises different aspects: one focuses on the specific colour coding and risk spectrum, while the other highlights the comparative and informational purpose for investors.
